DBO Bulletin Digest September 2020

The September 2020 DBO Bulletin focuses on new tenant and landlord protections and regulatory assistance for communities impacted by California wildfires.

The California Department of Business Oversight (DBO) supervises, licenses, and regulates a variety of financial institutions, including some real estate mortgage loan originators (MLOs) holding a Nationwide Multistate (or Mortgage) Licensing System and Registry (NMLS) license. Alongside the California Department of Real Estate (DRE), the DBO shares the responsibility for overseeing MLOs depending on their license use.

Continue reading for a breakdown of September’s DBO happenings.

Landlord and Tenant Protections

In September, Governor Gavin Newsom signed a new state tenant protection measure, known as the Tenant, Homeowner, and Small Landlord Relief and Stabilization Act of 2020.

The new statewide tenant protection measure protects millions of tenants from eviction and property owners from foreclosure due to economic impacts of COVID-19. These protections apply to tenants who declare an inability to pay rent due to COVID-19-related financial distress.

The governor additionally launched the “Housing is Key” campaign to accompany the new Act. The campaign, which is coordinated by the Business Consumer Services and Housing Agency (BCSH), is meant to connect renters and landlords experiencing pandemic-related economic hardships with helpful information and resources related to the temporary moratorium on evictions.

On the Housing is Key website, renters and landlords can also use a new app for information on the moratorium. The California COVID-19 Information App for Tenants and Landlords uses a survey to provide a personalized, downloadable report that explains the user’s specific protections and obligations under the new law.

Related Articles:

AB 3088: New eviction protections to last through January

Regulatory assistance provided for disaster areas

The Office of the Comptroller of the Currency, the Federal Reserve’s Board of Governors, the Federal Deposit Insurance Corporation, the National Credit Union Administration and state regulators issued a statement on California’s devastating wildfire season. The statement covers financial institutions’ customers and operations and providing appropriate regulatory assistance.

Banks and mortgage lenders are encouraged to work with borrowers in communities affected by the wildfires. Efforts to adjust or alter terms of existing loans in affected areas may be more lenient due to the wildfires. Modification of existing loans need to be evaluated individually to determine whether they represent troubled debt restructurings. The evaluation needs to be based on the facts and circumstances of each borrower and loan, which requires judgment, as not all modifications will result in troubled debt restructurings.

The statement also provides guidance on facilities, regulatory compliance and reporting requirements for financial institutions. You can read more here.

DBO suggestion box

Licensees are invited by Commissioner Manuel P. Alvarez to submit creative ideas and suggestions to help make the DBO more efficient.

Commissioner Alvarez says the DBO wants to hear how they can ease some of the burdens through regulatory efficiencies and the use of technology while they conduct business during the COVID-19 pandemic.

You can send any ideas by email to efficiencies@dbo.ca.gov by October 16, 2020.